RTI - Real Time Information for Payroll

So, how much have the initials permeated the public’s consciousness…?

HM Revenue and Customs have given employers a reasonable amount of notice that the scheme of having to submit a monthly return of all salary payments made was to be introduced, but we are now able to see how the scheme may work in practice. And, the usual few teething problems aside, things seem to be proceeding fairly well.

It certainly seems likely that HMRC will use the monthly returns to ensure that employers are paying over the tax and national insurance amounts that have been deducted from salaries more promptly. Many businesses will start to receive much tougher treatment, much earlier, from HMRC if these payments are not kept up to date, and the interest and penalty regime that the tax office can use is something that seems likely to become more frequent

As an employee, this system should also ensure that you are more likely to pay the correct amount of tax. Many thousands of people have had surprises, some pleasant and some less so, over the last few years, when HMRC have linked two part time jobs together, or repaid tax where people have perhaps not worked for an entire tax year. Hopefully this should be a thing of the past now, as the tax office should be able to pick up on these types of issues more promptly.

If the implications of Real Time Information are something with which we can assist, then please contact either Jeremy Fozzard or Mark Williams

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